Today, I would like to open a discussion about the DAO structure.
As we know, MetalSwap currently has a “classic” DAO structure where the vote is represented by the XMT token. This is great, but we must keep in mind the problem of plutocracy:
“A plutocracy (from Ancient Greek πλοῦτος (ploûtos) ‘wealth’, and κράτος (krátos) ‘power’) or plutarchy is a society that is ruled or controlled by people of great wealth or income.”
I’ve been looking into how other protocols try to resolve this problem, and the Optimism structure caught my attention. On Optimism, the DAO is divided into two House: the Token House (classic DAO where 1 token = 1 vote) and the Citizens’ House, which is a part of the DAO that is not based on the OP token, but on Soul Bound NFTs. The Soul Bound technology allows the creation of tokens or NFTs that are bound to a specific address and cannot be sold on the market. In the specific case of Optimism, the Citizens’ House will make decisions about retroactive Public Goods funding. This is how Optimism tries to resolve the plutocracy problem.
I think that in the future, given also the nature of our dApp, the DAO of MetalSwap will have to struggle with this problem and by writing this discussion I am interested in creating a debate on this topic.
I leave this interesting article regarding this topic: Moving beyond coin voting governance
0xFlow